Globex Royalty Partners Announce Significant Progress

Globex Mining Enterprises Inc. (CA: GMX – $0.83 & US: GLBXF – $0.60 & GER: G1MN – €0.52) arranges transactions to vend property assets such that the Company can retain royalty interests if a producing mine is established at one of the projects in a later stage. An attractive roster of active properties is now advancing through work completed by various royalty partners.

Globex provided an update on the status of eight different projects actively advancing through the efforts of royalty partners. In addition, a significant transaction payment was received for a previously arranged option deal. Finally, a new property acquisition was reported to build the inventory of projects available for the next round of deals that may be announced in the future.

Ongoing Activity by Partner Companies Builds Value Proposition for Royalty Holdings

The impressive suite of royalty interests retained by Globex establishes a reservoir of future shareholder value. Many of the royalty partners are ambitiously advancing these projects towards the potential for development of a producing mine. The milestones achieved along the way therefore improve the prospect for significant recurring income to Globex.

For example, Globex reported the first royalty payment of $58,814.68 received from partner IAMGOLD [ IAG-NYSE, IMG-TSX] as open-pit mining operations had commenced at the Fayolle gold project in Quebec. Globex retains a 2% Net Smelter (NSR) Royalty on this property. The outlook for subsequent royalty payments in the future as mining operations continue demonstrates the attraction of the royalty portfolio.

Manganese X Energy Corp [MN-V] reported that it has signed a memorandum of understanding with a battery manufacturer in relation to the Battery Hill manganese project in New Brunswick. Manganese X has provided a sample of the high-purity manganese monohydrate that it aspires to produce from a mine development of the deposit. Favorable evaluation of this sample may pave the way to secure a formal offtake arrangement, further validating the economic outlook for development to proceed at Battery Hill. Globex retains a 1% Gross Metals Royalty (GMR) on all production from Battery Hill.

Junior explorer Cartier Resources Inc [ECR-V] has commenced a 25,000-meter drilling program at the Cadillac East portion of the consolidated Chimo Gold Mine project. Globex retains a 3% GMR on this portion of the property. Meanwhile, Brunswick Exploration [BRW-V] has also commenced drilling at the Lac Escale lithium project previously acquired from Globex. This work will test additional targets within a swarm of lithium-bearing dykes that were validated through successful drilling in 2023. Globex retains a 3% GMR on the Lac Escale claims.

Option Partner Emperor Metals Inc Issues Transaction Payment for Duquesne West – Ottoman Project

Following an option deal to enable the acquisition of the Duquesne West – Ottoman project in Quebec, Emperor Metals [AUOZ-C] has maintained an active exploration posture. Successful drilling programs have outlined new gold resource zones at the property.

Work continues to advance the project as Emperor maintains its obligations to earn 100% ownership of the property. Emperor reported earlier this month that it had completed an aeromagnetic geophysical survey spanning 14.5km of high-resolution sensing at the project. The company believes interpretation of this data will enhance the ongoing exploration effort to outline additional resource zones.

Under the terms of the option deal to acquire this project, Emperor is required to issue payments of cash and shares during a five-year term, payable on each anniversary of the transaction. The current payment of $500,000 in cash was issued this month to Duparquet Assets Ltd. An additional payment of Emperor shares valued at $300,000 was also paid, representing a total of 2,583,119 shares. As a partner of Duparquet, Globex is entitled to half of the cash and shares payable through this transaction. Globex also retains half of the 3% GMR retained against the property.

Gold-Silver Exploration Prospect Acquired in Nevada

This week, Globex reported the acquisition of a new property asset, located in Nevada, United States. The Company completed a staking program to secure a package of eight lode claims, comprising more than 66 hectares in Clark County, NV. The claims package, deemed the Red Star Project, includes two previously outlined epithermal quartz vein systems. The Red Star vein system has been mapped for 2kms along strike through the property. Further to the south, an extension of the Double Standard vein system spanning 470m has been mapped within the property area. Low sulphidation epithermal mineralization has been documented at each of the vein systems by previous operators. The property area is located at the northern edge of the historic Crescent Mining district.

Globex was able to complete prospecting at several outcrops of the Red Star vein system, extracting 60 samples. In addition, the Company collected three samples from the Double Standard vein system, plus two samples from outside the property area that are believed to be extensions of the systems.

At least three phases of epithermal alteration contributed to the formation of the quartz vein systems encountered at the property. The Double Star vein mineralization included values up to 9.6 g/t gold and 70 g/t silver. A secondary phase of alteration impacted both Double Star and Red Star systems. A third phase appears to have enriched the Red Star system, with grades equivalent values up to 20.1 g/t reported.

Globex reports this prospective land package offers exceptional discovery potential for gold and silver mineralization. The wholly owned claims were acquired at low cost through staking, building diversification of the Globex property interests to an attractive exploration district in Nevada.

Conclusion

The ongoing efforts by various royalty partners improve the outlook for productive mine development at their respective properties. Royalty partners bear the burden of funding and carry out all of the work to advance these projects and yet Globex may anticipate royalty payments if successful development is achieved. This potential was validated with the receipt of a recurring income stream from IAMGOLD as mining commenced at the Fayolle property.

The Company also upgraded the portfolio of property holdings with the reported acquisition of the Red Star project in Nevada. The suite of property holdings provides the pipeline of assets that may be vended in option deals to form future partnerships. Globex earns transaction payments from these deals, often representing significant income to the Company. This outcome was illustrated with the receipt of the latest transaction installment from Emperor for the Duquesne West – Ottoman project.

The full cycle project generator business model employed by Globex continues to achieve positive results. The receipt of additional cash and share payments further improves the balance sheet while the steady pace of work through partnerships creates potential value in the quarters ahead. Smallcaps Recommendation: BUY.

Smallcaps.us Advice: Buy	Price Target: $2.87	Latest Company Report (pdf)
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